Mortgage lending is tracking the hyper-active sales market and in March hits the highest level since records began in April 1993, the Bank of England (BoE) has reported. Its latest Money and Credit report reveals that net mortgage borrowing hit £11.8 billion driven by 82,700 house purchases, although this is fewer transactions than the recent all-time peak of 103,000 recorded by the BoE in November last year. But the amount borrowed during March remains a huge leap when compared to February, when borrowing hit £6.2 billion. Just over a year ago the BoE cut its base lending rate to 0.25%. Mortgage market momentum has been growing month on month since the start of the year and, while the Bank of England today reports that net mortgage borrowing reached an 18-year high, our figures show that April is set to outperform March, believe commentators. Data shows that £150bn of property transactions were completed in the first 15 weeks of 2021. Running ten weeks ahead of a typical year, this level of sales wouldn’t normally be achieved until the end of June. Mortgage approvals are always a good indicator of future direction of travel for the market. Although these numbers are a little lower than the previous month, they reinforce what experts have been seeing on the ground – buyers are determined to move even though many know the log jam in the system will mean they won’t be able to take advantage of the stamp duty concession before the tapering begins at the end of June.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of May 2021 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.